What is the simple interest of a note that has a face value of $12,000, a rate of 8%, and a term of 1 year?

James Morris asked May 14, 2023

482,320 views

13 votes

James Morris asked May 14, 2023

2.8k points

Your comment on this question:

Email me at this address if a comment is added after mine:Email me if a comment is added after mine

Privacy: Your email address will only be used for sending these notifications.

Email me at this address if my answer is selected or commented on:Email me if my answer is selected or commented on

Privacy: Your email address will only be used for sending these notifications.

12 votes

Solution:

Given:

$\begin{gathered} P=\text{ \$}12,000 \\ R=8\text{ \%} \\ T=1year \end{gathered}$

Using the simple interest formula,

$\begin{gathered} I=(PTR)/(100) \\ I=(12000*1*8)/(100) \\ I=\text{ \$}960 \end{gathered}$

Therefore, the simple interest is $960.

2.0k points

Email me at this address if a comment is added after mine:Email me if a comment is added after mine

Privacy: Your email address will only be used for sending these notifications.

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers